Tax & Legal Update
With tax package approved, GFD preparing draft information on amendment to VAT Act
The chamber of deputies has approved a tax package referred back to the chamber by the senate in its original “chamber” wording. In particular, the senate’s motions to amend VAT on real property were dismissed by deputies. Even though the effective…
Interest on long-retained excess deductions liable to income tax?
Interest on long-retained excess deductions of up to 14% p.a. was first awarded to a taxable entity by the Supreme Administrative Court more than two and a half years ago. Since then, a number of administrative courts proceeded similarly and…
Defence against unlawful procedure to remove doubt may be well worth it
In its recent judgement, the Supreme Administrative Court (SAC) emphasised that the procedure to remove doubt should only serve to clarify concrete uncertainties. It is a tool to ascertain or to check, immediately and without delay, whether a tax…
Duty to identify clients and ascertain beneficial owners
According to the ruling of the Municipal Court in Prague, it is not possible to simply identify a statutory body, director or other top manager as the beneficial owner in cases of unclear ownership structures, as such persons may not be in a direct…
CJEU on hijabs in the work place
In March, the Court of Justice of the EU (CJEU) dealt with the controversial topic of wearing Muslim headscarves – hijabs – in the work place. It held that employers may ban employees from wearing visible religious symbols at work. The verdict,…
CJEU: in mergers, the burden of proof lies with tax administrators
In early March, the Court of Justice of the EU (CJEU) dealt with an interesting question in the Société Euro Park Service (C-14/16) case. The case involved a dispute whether a tax administrator’s prior approval was necessary to defer the taxation of…
Effective date of the amendment to the Insolvency Act approaching
The comprehensive amendment to the Insolvency Act published in the Collection of Laws under No. 64/2017 Coll. enters into effect on 1 July. One of its most important changes expands and specifies the definition of bankruptcy. The amendment also…
New data processing consent required under GDPR?
The new EU General Data Protection Regulation (GDPR) is knocking on our door. Although the new rules are only to be followed from May 2018, due to the complexity of implementation a number of companies have started to prepare for them already. In…
MF issues discussion paper on ATAD implementation
The Ministry of Finance released a discussion paper on the implementation of the EU Anti-Tax Avoidance Directive (ATAD) into Czech law. It mainly focuses on new interest deduction limitation rules, exit taxation, controlled foreign company rules and…
The moment of export from a VAT perspective
Last year’s amendment to the VAT Act changed the definition of a tax document upon the export of goods. A recent contribution submitted by the Chamber of Tax Advisors for discussion in the coordination committee with the GFD clarifies the moment at…
Penalties for VAT ledger statements: new waiver options
The General Financial Directorate (GFD) is expanding options to waive penalties for the failure to file VAT ledger statements, or for their late filing, amounting to CZK 10, 30 or 50 thousand. It will be possible to waive up to two penalties for…